We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter. The 2026 and 2025 goodwill impairment tests indicated no impairments.

The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in our calculations, we could incur future impairment charges. These tables exclude Hydraulic Cylinders as this reporting unit had no goodwill at either testing date and Aerospace, which was divested in the third quarter of 2025.


2026
Fair Value over Carrying Value divided by Carrying Value	June 30, 2026 Goodwill Value		Compound Annual Growth Rate (CAGR) Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 25% 1	$	443.9	2% - 4%	2.5	%	17% - 19%
25% - 50%	301.2		(1) - 4	2.5		17


	$	745.1	(1%) - 4%	2.5	%	17% - 19%


2025
Fair Value over Carrying Value divided by Carrying Value	December 31, 2025 Goodwill Value		CAGR Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% 1	$	447.1	<1% - 4%	3.0	%	15% - 17%
51% - 100%	304.3		(2) - 4	3.0		15 - 17



	$	751.4	(2%) - 4%	3.0	%	15% - 17%

1 This category includes our Bedding, Home Furniture, and Work Furniture reporting units for both testing dates.

•The fair value of Bedding exceeded its carrying value by approximately 10% and 20% at our 2026 and 2025 testing dates, respectively, and had goodwill of $320.8 at June 30, 2026 and $323.7 at December 31, 2025.

•The fair value of Home Furniture exceeded its carrying value by less than 5% and approximately 35% at our 2026 and 2025 testing dates, respectively, and had goodwill of $68.5 at June 30, 2026 and $68.4 at December 31, 2025. A 1% increase in the discount rate (holding all other assumptions constant) would cause the fair value to be less than the carrying value. While no impairment was recorded, it is possible that future changes in circumstances could result in a non-cash impairment charge.